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If a 2-year bond is yielding 6:25% and selling at par, what is the 1-year rate next year if the bond price falls to $99:00:

If a 2-year bond is yielding 6:25% and selling at par, what is the 1-year rate next year if the bond price falls to $99:00: (a) 6.25%; (b) 7.25%; (c) 4.28%; (d) 2.00%;

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